Investment Management

Arthur Stein Financial, LLC (ASF) serves as both an investment advisor and portfolio manager for selected clients.

The path to financial security goes well beyond career success. Financial security is achieved by building an intelligent investment portfolio that grows and changes as you change. With sound investment strategies, you gain the tools you need to build assets over time. The goal is to build portfolios that offer the opportunity to increase purchasing power, create wealth and generate income, all while trying to reduce risk.

Arthur Stein Financial, LLC is a Registered Investment Advisor, which means that the firm is a “fiduciary” when dealing with clients. Our obligation is to put the client’s interest first. For instance, we cannot choose one investment over another because it would be more profitable for the firm.

Doctors, lawyers and CPAs are fiduciaries. Your investment manager should meet the same high standard.

Investment management by Arthur Stein Financial (ASF) includes a range of services:

• Risk management:
  Discussing your financial situation and investment temperament to help determine the appropriate allocation between stock investments and bond investments.
  
• Asset management:
  
  • Consolidating accounts at the Custodian.
    
  • Creating a diversified portfolio to match the allocation.
    
  • Rebalancing when necessary or to take advantage of market opportunities.
    
  • Harvesting tax losses when possible, and
    
  • Determining asset location for tax efficiency purposes.
    
• Monitoring and reporting:
  
  • ASF monitors your portfolio to make sure the agreed upon stock/bond allocations are within stated tolerance ranges. Changes are made as needed.
    
  • ASF monitors the investments to determine whether any should be replaced.
    
  • The custodian produces monthly reports that detail holdings, values and transactions.
    
  • ASF emails quarterly reports, which include performance summaries, allocations, trades and the calculation of the quarterly fees.
    
• Advising on withdrawals (RMDs, lump sum withdrawals, monthly income) and then handling the execution.
  
• When the markets sharply decline or increase, we help clients maintain perspective and stay focused on short and long-term goals.
  
• Financial planning: We advise on other financial issues as part of the relationship. There is no additional fee for clients whose investments with us exceed $1 million. We have provided investments clients with advice on retirement planning, insurance policy suitability (auto, homeowners, LTC and life), buying or leasing a car, the best strategies to help children or grandchildren, refinancing mortgages, beneficiary designations, etc.
  

When using Arthur Stein Financial, LLC, there is no confusion about how you are paying for services. As a fiduciary, the quarterly investment management fee is our sole source of compensation. ASF receives no commission income nor does it receive fees from any source other than clients.

We are compensated by a fee that is a percentage of investments managed. Fees are paid quarterly, in advance, pursuant to the terms of the investment advisory agreement. Fees are based on the market value of all client accounts under management at the end of the prior calendar quarter.

Investment advisory fees are based upon the value of the Portfolio being managed by Advisor. One of the following two schedules is used:

The minimum investment is $750,000. ASF reserves the right to raise or lower the minimum investment on a case-by-case basis.

Fees are billed in advance. Additional information about fees is contained in our ADV Part 2a on pages 5-6.

Note:

Clients should be aware that there are no guarantees and past performance is no guarantee of future performance. Investing outside the US entails additional risks (such as currency fluctuations), as does investing in smaller companies. There is no guarantee against losses. Stocks, bonds, real estate and commodities (and the funds that own them) fluctuate in value and there will always be times when they lose value. For bond investments, the principal of the bond holdings is not guaranteed. Bond fund shares are subject to the same interest rate, inflation and credit risks associated with the underlying bond holdings. Funds with lower-rated bonds are subject to greater fluctuations in value and risk of loss of income and/or principal. For tax-exempt bond funds, income may be subject to federal alternative minimum taxes and/or federal, state and local taxes. Certain other income, as well as capital gains distributions, may be taxable.

Copies of the ASF privacy policy and forms ADV Parts 2a and 2b are available on request.